Take Savvy Steps When Relocating Your Business

SMALL BUSINESS

November 15, 1998|By Jane Applegate

Relocating a business for personal reasons is one option frequently available only to entrepreneurs.

In 1997, Matt Bearson and his family decided to leave Los Angeles for the rolling hills of Marin County in Northern California. Friends and customers were surprised because his specialty furniture store, 100% Rocking Chairs, was at the top of its game. The store, which sold only rocking chairs, found a lucrative niche in the Los Angeles maternity market, with 1996 revenue topping $500,000 - the best in its nine-year history.

``A lot of friends thought I was crazy to walk away from a business I was doing so well with,'' said Bearson, who thought he would have no problem finding a buyer for his quirky business.

Unfortunately, he was wrong. Unable to find a buyer, he said, ``we just sold everything and walked away.''

Bearson spent a year and a half exploring other opportunities and enjoying the slower pace of life in Marin County. He hadn't intended to reopen his store in Marin but decided to do it when nothing else seemed more appealing.

However, he made substantial changes. He wrote an employee training manual, created a Web site and changed the name of the store to Rocking Chairs 100% to make it easier to find in the Yellow Pages. He converted the product descriptions he devised for the Web site into detailed and informative price tags.

``These are things I would have never gotten around to doing in L.A.,'' Bearson said. Based on sales for his first six weeks in business, Bearson projects sales of about $700,000 this year - better than in Los Angeles. For Bearson, reopening his store involved the daunting challenge of finding a new location. He had moved from a greater Los Angeles customer base of 7 million people to an area with a population of only 250,000. However, Marin is an upscale area where people are willing to pay hundreds of dollars for a rocking chair. He also had to pay much more in rent to capture the foot traffic in a popular, open-air mall.

Next, he had to rebuild his inventory. Though he met with some resistance from the vendors he had done business with before, his solid reputation helped him get his foot back in the door. ``I didn't leave a trail of debt,'' he said. ``I paid everyone when I closed up the last time,'' Bearson said. It also helped that he was prepared to place large orders. Part of his business strategy is to invest upfront in inventory.

Bearson placed his factory orders before he had even signed a lease on a new location, so he wouldn't waste time paying rent on an empty store. Yellow Pages and other advertising were placed months before he opened. Finally, Bearson created a Web site - www.rocking -chairs.com - that encourages customers to call toll-free at 1-800-4-ROCKER and speak with him or a sales associate instead of blindly ordering online.

Sacrificing a successful business for the sake of personal and lifestyle happiness may seem gutsy to the point of foolish, but for Bearson, it has paid off with his reinvented venture.

If you are thinking of relocating your business, here are some tips:

1. Do your homework. Figure out where you want to live and whether your business can flourish there.

2. Work with a good real estate broker to find the right location.

3. Make sure the new location has all the services you need to operate your business, including shipping, rail service or warehousing.

4. If you have to travel, make sure there are airports nearby.

5. About six months before the move, alert your clients and customers. If you can't continue serving them, refer them to other vendors and suppliers.

6. Make sure your phone numbers, fax numbers and e-mail accounts are up in the new location before you move.